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Car Loans with Bad Credit in Kitchener - How to

Car Loans with Bad Credit in Kitchener - How to

No matter what your financial history or your current position, there are products out there to get you what you want. If you have less than perfect credit and need a car, a bad credit car loan could be just the break you need. Our Kitchener car loans team outlines how car loans with bad credit work and how to get one. We can even help secure you a great deal. All you have to do is ask.


Bad credit car loans in Kitchener


You may have had financial difficulties in the past or you may not have built a credit score yet. Either way, there are options available if you want to buy a new car.


It isn’t always easy or cheap, but it is definitely possible. We help hundreds of Canadians be accepted for bad credit car loans and we could help you too.


Here’s what to do to prepare for a car loan.


Check your credit report


The first thing you should do is check your current position. Check your credit report with TransUnion or Equifax and check your score.


Check everything on your credit report is correct while you’re there. Make sure your address, open accounts, levels of debt, payments and everything mentioned is 100% correct as errors can impact your chances of being accepted for a loan.


Pay down as much debt as possible


Depending on how much time you have, pay down as much debt as you can while you save for a down payment. The more you can pay down, the healthier your credit report looks to a potential lender.


Outstanding debt also counts against your debt to income ratio. This is the amount of debt you have versus your income. Higher ratios mean less chance of qualifying for a loan. Lower ratios mean a higher chance.


Paying down debt will lower your debt to income ratio.


Use a down payment


We appreciate that it isn’t always easy to save for a down payment but using one can strengthen your bad credit car loan application considerably. Lenders like it when borrowers put their own money on the line as it lowers the chances of you defaulting.


This makes them more likely to lend, which is what we want.


Set up automatic payments for all outgoings


Setting up automatic payments for all bills and debts means never missing one. That will help improve your credit score significantly over time. As long as you ensure there are adequate funds in your account to meet those payments, it’s a sure way to help rebuild your credit.


Make sure you can afford the loan


Be honest with yourself about how much you can afford to borrow and repay. Use car loan prequalification or a loan calculator to help you work out how much you can afford to borrow.


Ask to borrow too much and you risk being turned down. Make sure monthly payments are affordable and won’t leave you financially exposed.


When you have done all that, come see our Kitchener car loans team and we’ll work with you to secure that bad credit car loan!


We will use all our skill and experience to deliver the lowest possible Mount Hope auto loan rates, guaranteed. Contact Car Nation Canada Direct to learn how we can help.


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Categories: Auto Loan

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